According to Steadily, the ideal tenant retention rate for success in property owners is at least 60%.
If you're having trouble keeping your tenants satisfied enough to remain in your rentals, you need to make changes to your lease renewal strategies. Poor tenant retention leads to high vacancy rates, which results in lost income and plenty of landlord stress.
Today, we'll help you retain your most valuable tenants with improved strategies.
Maintain Your Property
Property maintenance is essential for tenant retention. When you have a great tenant, the last thing you want to do is alienate them because you weren't attentive enough to your property's needs.
All rental properties go through a lot of wear and tear. Listen to tenant requests for maintenance and make prompt repairs. Schedule regular rental inspections to ensure your property remains a great place to live, which will help boost your tenant's satisfaction.
Create a Tenant Portal
Communication is at the heart of all good landlord-tenant relationships. If your tenant has a difficult time getting hold of you, whether it be to complain about another tenant or make a maintenance request, they'll start to get frustrated.
Implementing a tenant portal will mitigate these frustrations. A portal gives your tenant a place to make requests, pay rent, and raise any other concerns about the property. As long as you check your portal regularly, communication will be streamlined.
Fair Rental Rate Increases
Arizona imposes no rental increase limitations on landlords. Just because you can raise your rental rates as much as you'd like each year doesn't mean you should.
If you put your rent above market value, you'll drive perfectly good tenants away and cost yourself more money in the long run. Keep rental increases fair and your tenants will respect them.
Secure Lease Renewals Early
Another important strategy for lease renewals is to secure them as early as possible. This is important for multiple reasons.
Firstly, it gives you plenty of time to assess market conditions and negotiate with your tenant about any changes to the lease agreement. Secondly, if your tenant decides to vacate, you'll have plenty of time to market your vacant unit and secure your next tenant.
Listen to Tenant Needs
When negotiating with an existing tenant, always listen to their needs. This goes back to the importance of communication that we mentioned above.
Your tenant may have some requests before renewing a lease. If you value your tenant, you'll listen to their needs and make any necessary changes, within reason, of course.
Get Help with Lease Renewal Strategies
These lease renewal strategies will help you keep great tenants in your properties. This is the best way to maximize your rental income and eliminate the stress of searching for new tenants.
If you need help securing rental renewals, hiring a property manager will do the trick. A great property management team, like PMI US Southwest, ensures that your tenants come first. We offer comprehensive property management services to benefit landlords and tenants alike.
To find out more about what we do, contact us today.
